Tag Archives: private bank

BMO Private Bank today released the results of a study on high-net worth Arizonans (those with at least $1 million in investable assets) and hobby (or passion) investing. The study, the fifth and last in a series by BMO Private Bank examining trends among the affluent, found that half of the state’s wealthy engage in some form of hobby investing. This compares to the national average of 68 percent.

Hobby investing is defined as adding collectible assets to one’s portfolio as a means of diversification and, just as important, as a way to have and to hold the things investors love the most.

“While diversification is critical when structuring a portfolio, hobby investments should be limited to a relatively small portion of an investor’s overall portfolio because of the unique risk and liquidity characteristics associated with most collectible assets,” said Mike Sullivan, Director of Investments – Western U.S, BMO Private Bank.

The study found that the items in which the Grand Canyon State’s affluent are most passionate about investing include:

“People who choose to invest in their hobbies often do so because it allows them to feel a sense of engagement without having to spend a lot of time on them. Many hobby investors are keen to create a legacy to pass on to their heirs – one that is unique to them and reflects their interests,” said Jack Ablin, Chief Investment Officer, BMO Private Bank.

Why do People Engage in Hobby Investing?

According to the study, one of the main reasons why Arizona’s affluent engage in hobby investing is simply because it is “fun” (65 percent). Other reasons identified include:

Regardless of what influences people to combine their hobbies with investing, Mr. Ablin noted that, as with any form of investing, there are a few cautionary factors Arizonans of all income levels need to consider. For example:

Antiques: can be very illiquid and therefore not suitable for those who may need to convert them to cash in a short period of time. Wine and art collecting: are long-term propositions, so not appropriate for those with a short-term investing horizon. Stamps and coins: there is a robust counterfeit market in both these items, so investors need to be careful about their authenticity and well-educated about the risks. Comic book collecting: may be trendy today, but the market may not be so strong in the long or even the medium term.

Key National Findings:

On a national level, the study found: * Two-thirds (68 percent) of high net-worth Americans have a hobby investment. T* he most common hobby investments are coins (38 percent), art (36 percent), and jewelry (31 percent). * High net-worth Americans are most likely to engage in hobby investments because they find it “fun” (62 percent), because it is a way to combine an interest of theirs with investing (54 percent) and because it enables them to pass something special down to their loved ones (40 percent). * Four-in-ten (40 percent) say they invest in their hobbies because it is a sound investment which will appreciate in value, with this being a larger motivator for men than women (41 percent vs. 36 percent).

The online survey was conducted by Pollara between March 28th and April 11th, 2013 with a sample of 482 American adults who have $1M+ in investable assets. The margin of error for a probability sample of this size is ± 4.5%, 19 times out of 20.

Wells Fargo Private Bank announced Daniel G. Wani as a senior estate specialist. Wani will work with clients to efficiently administer complex trusts and estates. Based in Scottsdale, he will also collaborate with a personalized team of financial advisors, investment managers, private bankers and trust officers to provide customized service to clients in Arizona, Nevada, and New Mexico.

“Daniel’s experience along with his dedication to meeting client needs makes him a valued asset to the Wells Fargo Private Bank team,” said Michael Wernersback, senior regional fiduciary manager. “We are committed to helping high-net-worth individuals and families through every stage of their wealth lifecycle. By offering the services of a senior estate specialist, we are able to provide highly exceptional and personalized service that helps our clients navigate the complexity that wealth creates.”

Wani joins Wells Fargo from Excel Capital Group, LLC, where he helped structure investment vehicles and trusts for investors and company executives. Prior to that, Wani worked at Twomey Latham Shea Kelley Dubin & Quartararo, LLP, in New York, where he provided tax, business succession planning, estate planning, and trust and estate administration services for private clients and small businesses. Wani received a Legal Letters Masters (LL.M) in Taxation from New York University School of Law and a Juris Doctorate (J.D.) from Boston University School of Law. In additional he holds a bachelor’s degree in psychology from Roger Williams University.